Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2015

Sales And Use Tax Law

CHAPTER 4. EXEMPTIONS

Article 1. General Exemptions

Section 6361

6361. Nonprofit youth organization. (a) Any organization listed or described in subdivision (b) is a consumer and shall not be considered a retailer within the provisions of this part, of food products, nonalcoholic beverages, or other tangible personal property made or produced by members of the organization provided, however, that the organization's sales are made on an irregular or intermittent basis, and that the organization's profits from those sales are used exclusively in furtherance of the purposes of the organization.

(b) For purposes of this section, "organization" includes any of the following:

(1) Any nonprofit organization which meets all of the following conditions:

(A) The organization qualifies for tax-exempt status under Section 501(c) of the Internal Revenue Code.

(B) The organization's primary purpose is to provide a supervised program of competitive sports for youth, or to promote good citizenship in youth.

(C) The organization does not discriminate on the basis of race, sex, nationality, or religion.

(2) (A) Any youth group sponsored by or affiliated with a qualified educational institution, including, but not limited to, any student activity club, athletic group, or musical group.

(B) For purposes of this section, "qualified educational institution" means any of the following:

(i) Any public elementary, secondary or vocational-technical school providing education for kindergarten, grades 1 to 12, inclusive, and college undergraduate programs, or any part thereof, operated by state or local government.

(ii) Any nonprofit private educational institution providing education for kindergarten, grades 1 to 12, inclusive, and college undergraduate programs, or any part thereof, that meets the requirements of the State Department of Education for a school. "Private educational institution" means any entity providing education which satisfies the requirements of state and local laws pertaining to private educational institutions in effect on January 1, 1990, and which does not discriminate on the basis of race, sex, nationality, or religion.

(c) For purposes of this section, "irregular or intermittent," means associated directly with a particular event, such as fairs, galas, parades, scout-a-ramas, games, and similar activities. That term includes refreshment stands or booths that are utilized at scheduled events of organized leagues, but does not include storefront or mobile retail outlets which ordinarily require local business licenses.

History.—Added by Stats. 1974, Ch. 1421, operative January 1, 1975. Stats. 1985, Ch. 1153, effective January 1, 1986, added "youth group . . . in youth", deleted "whose primary . . . trustworthy adults", added "which qualifies . . . Revenue Code," deleted "and" before "nonalcoholic beverages", deleted "which it sells" and added "or other . . . intermittent basis" after "nonalcoholic beverages," and substituted "those" for "such" in the first paragraph, added second and third paragraphs, substituted "does" for "shall", and deleted "be construed to" before "include" in the last paragraph. Stats. 1986, Ch. 967 effective January 1, 1987, added the "Distributive Education Clubs of America, Future Business Leaders of America, Vocational Industrial Clubs of America, Collegiate Young Farmers, Boys' Clubs, and Girls' Clubs". Stats. 1988, Ch. 710, in effect August 29, 1988, operative January 1, 1989, added "Special Olympics, Inc., American Youth Soccer Organization, California Youth Soccer Association, North, California Youth Soccer Association, South, and Pop Warner Football." Stats. 1989, Ch. 654, in effect January 1, 1990, added subdivision letters (a), (b), (c) and (d), and substituted "501(c)" for "170(c)" in subdivision (a). Stats. 1990, Ch. 116, in effect June 1, 1990, deleted "nonprofit" after "(a) Any", deleted "youth group sponsored by a school district, or other organization the primary purpose of which is to provide a supervised program of competitive sports for youth, or to promote good citizenship in youth, which does not discriminate on the basis of race, sex, nationality, or religion, and which qualifies for tax-exempt status under Section 501(c) of the Internal Revenue Code," after "Any organization", added "listed or described in subdivision (b)" before "is a", deleted "of" after "consumer", deleted "with respect to" after "part", added "of" before "food", deleted "which it sells" after "the organization", added "provided, however, that the organization's sales are made" before "on an irregular", substituted "and" for "provided", added "organization's" before "profits", added "from those sales" after "profits", deleted "solely and" before "exclusively", substituted "the" for "those" after "furtherance of", added "of the organization" after "purposes" in subdivision (a); added subdivision (b); relettered former subdivision (b) as subdivision (c); renumbered former subdivision (c) as paragraph (3) of subdivision (b); deleted "The organizations described in this section include only" before "Little League", substituted "football" for "Football" in paragraph (3) of subdivision (b); added "For purposes of this section,", substituted "irregular" for "Irregular", deleted "as used in this section" before "means"; substituted "That term includes" for "Included are" added "does" after "leagues, but", substituted "That term includes" for "included are", deleted ", or activities by any group that does not qualify for tax-exempt status under Section 501(c) of the Internal Revenue Code." after "licenses"; and deleted former subdivision (d) which stated, " 'Nonprofit organization', as used in this section, does not include the state or any of its political subdivisions".